New Corporate Sustainability Reporting Law
New Corporate Sustainability Legislation:
The European Union (Corporate Sustainability Reporting) Regulations 2024 have been signed into law today and will come into effect today the 6 July 2024.
The Regulations require that all large companies and all listed companies (except listed micro-enterprises) report sustainability information in accordance with European Sustainability Reporting Standards in the directors’ report.
The European Union (Corporate Sustainability Reporting) Regulations 2024 were signed into law by Minister Burke yesterday on the 5 July 2024, and come into effect today on 6 July 2024.
The Regulations require that all large companies and all listed companies (except listed micro-enterprises) report sustainability information in accordance with European Sustainability Reporting Standards in the directors’ report.
Sustainability reporting must be provided with an auditor’s opinion with limited assurance and reported digitally.
The European Union (Corporate Sustainability Reporting) Regulations 2024 were signed into law yesterday by Minister Burke on the 5 July 2024, and come into effect today on 6 July. The Regulations require that all large companies and all listed companies (except listed micro-enterprises) report sustainability information in accordance with European Sustainability Reporting Standards in the directors’ report. Sustainability reporting must be provided with an auditor’s opinion with limited assurance and reported digitally.
The European Parliament and Council adopted Directive 2022/2464/EU as regards Corporate Sustainability Reporting on 5 January 2023.
The Directive is the EU’s response to the global reframing of company reporting to include environmental, social and governance matters which arises from the European Green Deal and the EU Action Plan for Financing Sustainable Growth.
The Directive harmonises the EU rules for sustainability reporting by companies and to put this on the same footing as financial reporting, ensuring that investors and other stakeholders have access to information to assess investment risks arising from climate change and other sustainability issues.
The directive expands the scope of the existing EU rules for non-financial reporting by large public interest entities to include large companies, and listed SMEs (excluding micros) on a main EU stock market.
Subsidiaries and large branches of non-EU companies with a significant presence in the EU will also be required to produce an equivalent sustainability report at the level of the parent.
The new rules will be phase for financial years from 2024-2028.
Companies in scope will be required to report annually in their directors’ report on environmental, social and governance (ESG) and human rights matters according to EU mandatory standards entitled European Sustainability Reporting Standards (ESRS).
The directors’ report must be produced in single electronic format by digitally tagging the information making it more amenable to digital analysis.
The information reported will be subject to a limited assurance (audit) until the adoption of reasonable sustainability assurance standards by the Commission if feasible by 2028.
Contact Lionheart Corporate Governance for Corporate Governance Support or for for more detailed guidance or to discuss how your board can enhance its sustainability reporting and assurance practices.
Our experts are prepared to assist you in navigating these challenges and identifying opportunities for improvement.
Partner with Lionheart Corporate Governance to ensure your board is equipped to meet the challenges of today and the future.
